A lot more than $43 million owed by broke Crystal Cathedral

The original megachurch, built within the 1950s, has encountered financial issues. Crystal Cathedral will be filing for bankruptcy. The “Hour of Power” telecast originates from the Crystal Cathedral. Both the church and also the telecast were started by Rev. Robert Schuller, Sr. A large group of creditors claim that Crystal Cathedral owes over $40 million. This includes millions of dollars to local vendors.

Crystal Cathedral bankruptcy proceeding

For a few months, there has been the possibility of the Crystal Cathedral going broke. In April of this year, a committee of creditors agreed to a moratorium. The creditors and Crystal Cathedral church had a chance for making payment plans with this decision. The moratorium, however, fell apart. About $7.5 million is owed to vendors and $36 million in mortgage payments are what the Crystal Cathedral needs to pay.

Creditors of Crystal Cathedral

Reorganization is allowed with the chapter 11 individual bankruptcy being filed by the Crystal Cathedral. If chapter 11 is of course, the Crystal Cathedral would be allowed to continue operations while attempting to pay back creditors. There are many lawsuits that Crystal Cathedral is dealing with right now. One woman wants $50,000 for the camels she’s been renting the church for the nativity pageant it has yearly. The Crystal Cathedral bankruptcy would provide a modicum of protection for the church while it tries to re-organize and pay back debt.

The bankruptcy proceeding plan for Crystal Cathedral

Paying creditors and filing bankruptcy has left Crystal Cathedral with only one plan. This plan is to change financial plans. The church is paying money for all expenditures, out of the almost $2 million it receives each month in donations. There are 50 less employees on the church. They all worked on the “Hour of Power” broadcast. The church says it will pay all the collectors as soon as it can. When Crystal Cathedral is still in individual bankruptcy, the courts have to oversee the repayment. The church makes financial responsibility something expected of its members. Crystal Cathedral will now be tested to see if it can practice its own teachings.

Articles cited

Yahoo News

news.yahoo.com/s/ap/20101018/ap_on_re_us/us_crystal_cathedral

Christianity Today

blog.christianitytoday.com/ctliveblog/archives/2010/10/crystal_cathedr_1.html